One out of Four Investors Say They Increased Their Cash Allocations Compared to Start of 2018

Last month’s Asset Allocation Survey special question asked AAII members how their current allocation compared to what they expected it would be when 2018 started. Just under 37% describe their allocations as being more conservative than expected, with approximately one out of four respondents say they increased their cash allocations. Conversely, one-third (33%) of respondents said their portfolio allocations were either close to their expectations or were otherwise unchanged. About 9% of respondents increased their exposure to stocks, while 5% reduced their cash or bond allocations. A few respondents noted that their portfolios had declined in value. Not all respondents who took last month’s asset allocation survey responded to the special question.

Here is a sampling of the responses:

  • “I expected to have more in stock index funds but instead kept a major portion in cash.”
  • “The allocation percentage is the same, but the value is lower than I expected.”
  • “It is more conservative than I anticipated it being. I decreased my equity exposure because of the increased market risk.”
  • “More stocks now due to the pullback.”
  • “It’s about what I thought it would be.”

Want to weigh in? Take the survey yourself and see results online at www.aaii.com/assetallocationsurvey

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